TurboTax question


M

mookie

Has anyone experienced this?

TT 2006 Premier. When figuring 1099B for a stock sale, to figure the FIFO
cost basis I entered all transactions, including DRiP's. During
proof-reading, I found that for one transaction, I entered .3000 instead of
..0300 (at $2.70). The Tax Owed calculator jumped a difference of $1,558.00
for .27 of one share at $89.853 per share. I re-did it several times with
the same result each time. I am not a tax expert (except at paying and
paying them), but I am assuming something may be wrong. Any comments?
 
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R

R. C. White

Hi, Mookie.

For the past few years, I've used only the Basic versions of Quicken and
TurboTax. Maybe the Premier versions are different. I assume that you also
are using Quicken, although you didn't say that.

In Quicken, when I sell stock, especially one where I have multiple lots -
and most especially when I'm selling less than all my shares - I click the
Specify Lots button on the Sell transaction screen. Then, for FIFO, I start
with the oldest lot and just keep clicking to add the next oldest lot until
Quicken says I have enough to equal the number of shares sold; the last lot
probably will be only a part of the shares in that lot. The major advantage
of this is that Quicken takes care of any rounding issues. This would be
especially useful for something like fractional shares in a DRiP.

Then, to get the information from Quicken to TurboTax, Import the
information into TT. You could print out a capital gains report from
Quicken and enter the details into TT, but there would still be the risk of
rounding errors. However, if you enter the actual dollars of basis that
Quicken reports, and the actual dollars of proceeds from the sale, your
reported gain should be correct, even if the number of shares is off
slightly. You pay tax on the dollars of gain, of course, not on the number
of shares.

RC
--
R. C. White, CPA
San Marcos, TX
(Retired. No longer licensed to practice public accounting.)
(e-mail address removed)
Microsoft Windows MVP
(Currently running Vista Ultimate x64)
 
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M

mookie

RC ~

I appreciate the Reply. Yes, I use Quicken (for many years). This year I
chose to simply enter from scratch as opposed to importing from Quicken as
my previous imports have always required tweaking. I wanted to see the
difference. Apparently I found it! I will try the import and see what
happens. Again, thanks.

Rich
 

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